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To make the sponge, stir together 1/8 teaspoon active dry yeast and 2 tablespoons warm water. Let this stand for five minutes. Combine the yeast with 1/3 cup room-temperature water and 1 cup bread flour. Stir for four minutes, then let rest for a minimum of 12 hours.

To make the bread dough, combine 1/2 teaspoon active dry yeast and 2 tablespoons warm milk. Let stand five minutes. Mix the milk with the sponge, 2/3 cup room-temperature water, 1 tablespoon olive oil and 2 cups bread flour. Beat at low speed until the four is moistened, then at medium for three minutes. Add 1 1/2 teaspoons salt, and beat for four minutes more.

Place dough in an oiled bowl, cover, and let rise 1 1/2 hours. Turn the dough out onto a floured work surface, cut in half, and place each on a sheet of parchment paper. Form into loaves, cover with a dampened cloth, and let rise 1 1/2 hours. Place on a heated baking stone in an oven preheated to 425 degrees Fahrenheit. Bake for 20 minutes.

To make rolls, cut the once-risen dough into 16 rolls. After allowing to rise again, bake at 475 degrees for 20 minutes.